The State of our Schools Updated Feb 12, 2007

SPOT supports efforts to rethink how services are delivered.  We also are committed to providing school climates that support diversity and respect. One of the goals of the current administration of the Arlington Public Schools is to define 21st century learning.    What do you think should be the priorities for the Arlington Public Schools?

Arlington Public Schools are under constant budget pressure to maintain level of service. The override, passed in 2005, ensured that Arlington Public Schools would maintain services at 2004 levels. However, some foreseen and unforeseen circumstances have impacted those projections:

• Health care cost increases above 7% target.  For FY2007-2008, health care costs have been reduced to 10% increase from previous year increase of over 13% due to changes such as higher co-pays, reduced demand, and new prescription drug plan. However, the target is still short of 7% override plan goal.
• Unexpected increases in heating costs. 
• Special Education Costs increases above 5% -  - Mandated and necessary special education costs are closer to 8-10% increase per year.
• Inflation

To put this in context, take a look at what have we lost since 2002. 

In FY2008, Arlington will have to find another $700,000 in cuts or in new revenues. You may ask, "how could this be possible with the passage of the override so recently?".  The answer is that the override incorporated a 5-year plan which made some assumptions.  It allowed for a 4% growth rate in operating budgets, presuming that health insurance would not increase by more than 7%/year and state aid would be appropriated at certain levels.  If that cost was higher, then the 4% would need to be decreased.  This is not specifically a school issue -- this was agreed to on the town and school side of the budget.

Unfortunately, health costs have gone up much more than 7%.  In addition, other costs have also increased dramatically, such as energy and special education.  Expenses beyond our direct control are increasing much faster than our revenue, which is capped at a 2.5% increase, plus the additional income from the override.  Our income is projected to increase by 1.1 million dollars next year.  Our expenses, without increasing any services, are projected to increase by 1.8 million dollars.  Increased expenses breaks down something like this:

• Cost of Living $880,000 (about 3%)
• Steps & levels $550,000   (faculty get increases as they move to  higher ranks through years of experience)
• Utilities 160,000
• Out-of-District - $250,000  (students with special services not currently available in Arlington)

• Other (net)($40,000)   -- retirements, etc.

• Total Increased Expenses = 1,800,000 minus Total Increased Revenue = 1,100,000

That's the 700K figure -- 1.8 mil - 1.1 mil.

This is a structural deficit, due to preexisting required obligations, that will continue into the future.  Depending on enrollment, at a minimum, Arlington will not be able to fund new programs, new teachers (other than replacement staff) and must cap Special Education at 5%, which will be difficult.  Because this structural deficit will continue for year 4 and 5 of the five-year plan, things don't get better as time goes on.  Increases in state aid this year will need to be allocated in those years so that the accumulated deficit is not even larger.

What should Arlington schools provide to students?

•   Reducing non-payroll costs -- trying to purchase things more frugally
•   Some staff reductions in subject areas where enrollment has diminished to try to create similar class sizes across subject areas
•   Managing turnover and retirement -- being frugal when replacing faculty, realizing some savings when senior teacher is replaced with junior teacher
•   Create more of a "profit-center" by renting school facilities
•   Trying to increase grant income
•   Investigate increases in fees